Cross-Border Tax & SaaS Compliance Calculator

How to use this calculator

1. 1

   Select your country of residence

   Choose the country where your business is registered or where you are a tax resident.

2. 2

   Select your customer's country

   Choose the country where your customer or payer is located — this determines VAT and withholding rates.

3. 3

   Enter your annual revenue and business type

   Input your expected annual revenue from this country and select whether you're a SaaS, freelancer, or service provider.

4. 4

   Review your tax obligations

   See your VAT/GST liability, withholding tax, net revenue, treaty benefits, and personalized compliance recommendations.

5. 5

   Export your estimate

   Download a JSON summary of your tax estimate to share with your accountant or for your records.

Cross-Border Tax Calculation Formulas

Cross-border tax liability combines destination-country VAT/GST (if above threshold) with source-country withholding tax based on applicable tax treaties.

Gross Revenue

Total revenue from cross-border transactions before any taxes

VAT%

Destination country VAT/GST rate (0% if below registration threshold)

WHT%

Withholding tax rate based on tax treaty (30% default if no treaty)

Net Revenue

Revenue remaining after all cross-border tax obligations

Frequently asked questions about Cross-Border Tax & SaaS Compliance Calculator

What is VAT/GST and why does it matter for my business?

VAT (Value Added Tax) and GST (Goods and Services Tax) are consumption taxes applied in most countries. If you sell digital products or services internationally, you may be required to collect and remit VAT/GST in your customers' countries once you exceed their registration thresholds.

What is a withholding tax?

Withholding tax is tax deducted at source by the payer before sending payment to a foreign recipient. For example, if a US company pays you (a non-US resident) for services, they may be required to withhold a percentage and send it to the IRS.

What is a tax treaty?

A tax treaty (or double taxation agreement) is a bilateral agreement between two countries that reduces or eliminates withholding taxes on cross-border payments. Without a treaty, the default withholding rate is often 30%.

What is the EU OSS scheme?

The One Stop Shop (OSS) is an EU VAT simplification scheme that lets you register for VAT in one EU country and report/pay VAT for all EU sales in a single quarterly return, instead of registering in each country separately.

At what revenue do I need to register for VAT in the EU?

For cross-border B2C digital services within the EU, the threshold is €10,000 per year across all EU countries combined. Below this, you charge VAT at your home country's rate. Above it, you must charge VAT at each customer's country rate.

Do I need to collect US sales tax for my SaaS?

The US has no federal VAT, but individual states impose sales tax on SaaS. You must collect sales tax in states where you have "economic nexus" (typically $100,000+ in sales or 200+ transactions per year). Rules vary by state.

What is India's equalization levy?

India imposes a 2% equalization levy on digital services provided by non-resident companies without a permanent establishment in India. This applies to SaaS, online advertising, and e-commerce supply services.

How do I claim a foreign tax credit?

Most countries allow you to claim a credit for foreign taxes paid against your domestic tax liability. In the US, file Form 1116. In the UK, claim relief through your self-assessment. This prevents double taxation on the same income.

What is Form W-8BEN?

Form W-8BEN is an IRS form that foreign individuals submit to US payers to claim reduced withholding tax rates under an applicable tax treaty. Without it, US payers must withhold 30% on certain payments.

Should I incorporate in a tax-friendly country?

While countries like Estonia, Singapore, UAE, and Delaware offer favorable tax regimes, the right choice depends on where you live, where your customers are, and your business structure. Always consult an international tax advisor before restructuring.

Related calculators